Utilities try to hedge and provide price stability by buying forward on fuel. Actually, in CA (as a former employee of that state's largest utility)the Commission had tried to stop the utilities from hedging on gas because they'd guessed wrong several times and there was public outcry, but without hedging, you are subject to this high price volatility. When gas prices go down, obviously hedging is unpopular, but it misses the point of hedging in the first place.

Hedging is still controversial:
http://www.google.com/search?rlz=1C1GGLS_en-USUS293US303&sourceid=chrome&ie=UTF-8&q=utility+hedging